Tencent Acquires Majority of Shares in Don’t Starve Developer Klei Entertainment

Klei Entertainment Tencent

Chinese giant Tencent has acquired a majority of shares in Klei Entertainment which is known for its title Don’t Starve. This was announced by the founder of Klei Entertainment Jamie Cheng on their forums in which the founder revealed that the studio will still have ‘full autonomy’ of its creative and operations side. Klei Entertainment is known for titles such as Don’t Starve, Oxygen Not Included, and Griftlands.

Jamie detailed that Tencent helped out Klei Entertainment back in 2016 to distribute Klei titles in China and Don’t Starve Together was also the very first title to release on Tencent’s WeGame platform. The developer is also currently working with them to develop Don’t Starve: Newhome on mobile devices. Both of the companies have been working together for a long time so this time around, Tencent will be giving them a necessary push in the right direction so that Klei can focus on game development.

You can find the official blog post detailed below:

What’s going to change?

There are some boring accounting changes that we will need to adjust to. Other than that, I will continue running the studio as before, with no changes to staffing, projects or other operations.

Why are we doing this?

Klei has been around for 15 years, and we have made many changes over the years in order to respond to a changing world. Consistently, my wish has been to enable people to do their best creative work, to learn and grow, to not have to worry about finances, and be able to enjoy their lives outside the studio. This has not changed.

This partnership helps us navigate a changing industry, and helps us focus on what we do best: making unique experiences that no one else can.

Who is Tencent?

Tencent has been in the games industry for many years, investing in companies that produce games such as Path of Exile, League of Legends, PUBG, Clash of Clans, Fortnite, and more.

In 2016, Tencent helped us distribute Klei games in China, with Don’t Starve Together being the  very first game to launch on their WeGame platform. More recently, we’ve been collaborating with them on Don’t Starve: Newhome on mobile.

Why Tencent?

We looked at a lot of different companies, and over the years, we’ve worked with a large number of publishers and distributors. Tencent is the only company that we felt would let us retain the level of control that we demand.

We’ve been working with Tencent for years and even at points where we disagreed, they were always willing to work with us to find the best solution for everybody involved and defer to us when we felt strongly.

How does this affect Klei games in China?

As mentioned, we’ve been working with Tencent for quite some time. We worked with them to launch Don’t Starve Together in China in 2016, and have been working with them on our China launches ever since.

Players in China make up a large proportion of the players of our games, and we have been supporting them alongside our North American operation for several years. We don’t expect significant operational changes for China or anywhere else in the world, but we do expect that this partnership will help us to better support our players in China.

What do you think of Tencent acquiring a major share in Klei Entertainment? Let us know in the comments section below.

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About the Author: Umair Khalid

Founder of GamesHedge, Umair enjoys a wide variety of video games ranging from RPGs to racing games. Currently busy with The Crew Motorfest and Way of the Hunter.

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